Regulon — CA-SB-7 · CA SB 7 (Automated Decision Systems in Employment)

WHAT THIS BILL REGULATES · 5 REQUIREMENT TYPES

How Is This Bill Enforced

Enforcement Authority

The Labor Commissioner enforces this part, including investigating alleged violations, ordering temporary relief, issuing citations, and filing civil actions. A public prosecutor may alternatively enforce the part pursuant to Labor Code Division 1, Chapter 8. No private right of action is created. Workers may file complaints with the Labor Commissioner but may not bring suit independently.

Private Right of Action

No private right of action. Enforcement is exclusive to the designated authority.

Penalties

Civil penalty of $500 per violation. In civil actions brought by the Labor Commissioner or a public prosecutor, the petitioner may seek temporary or preliminary injunctive relief, punitive damages, and reasonable attorney's fees and costs.

Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.

Statutory Text

Analysis & Obligations

Lab. Code § 1520

Definitions

(a)–(j) For purposes of this part, the following shall apply: (a) "Artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments. (b) "Authorized representative" means any person or organization appointed by the worker to serve as an agent of the worker. Authorized representative shall not include a worker's employer. (c) "Automated decision system" or "ADS" means any computational process derived from machine learning, statistical modeling, data analytics, or artificial intelligence that issues simplified output, including a score, classification, or recommendation, that is used to assist or replace human discretionary decisionmaking and materially impacts natural persons. An automated decision system does not include a spam email filter, firewall, antivirus software, identity and access management tools, calculator, database, dataset, or other compilation of data. (d) "ADS output" means any information, data, assumptions, predictions, scoring, recommendations, decisions, or conclusions generated by an ADS. (e) (1) "Employer" means any person who directly or indirectly, or through an agent or any other person, employs or exercises control over the wages, benefits, other compensation, hours, working conditions, access to work or job opportunities, or other terms or conditions of employment, of any worker. This shall include all branches of state government, or the several counties, cities and counties, and municipalities thereof, or any other political subdivision of the state, or a school district, or any special district, or any authority, commission, or board or any other agency or instrumentality thereof. (2) "Employer" includes a labor contractor of a person defined as an employer under paragraph (1). (f) "Employment-related decision" means any decision by an employer that materially impacts a worker's wages, benefits, compensation, work hours, work schedule, performance evaluation, hiring, discipline, promotion, termination, job tasks, skill requirements, work responsibilities, assignment of work, access to work and training opportunities, productivity requirements, or workplace health and safety. (g) "Federal government" shall have the same meaning as set forth in Section 52008 of the Government Code. (h) "Quota" means a work standard under which an employee is assigned or required to perform at a specified productivity speed, to perform a quantified number of tasks, or to handle or produce a quantified amount of material, within a defined time period and under which the employee may suffer an adverse employment action if they fail to complete the performance standard. (i) "Worker" means any natural person who is an employee of, or an independent contractor providing service to, or through, a business or a state or local governmental entity in any workplace. (j) "Worker data" means any information that identifies, relates to, or describes a worker, regardless of how the information is collected, inferred, or obtained.

Section 1520 establishes the definitions used throughout Part 5.5.5. Key terms include automated decision system (ADS), which is defined broadly to cover any computational process derived from machine learning, statistical modeling, data analytics, or AI that issues simplified output used to assist or replace human discretionary decisionmaking — but explicitly excludes spam filters, firewalls, antivirus software, identity and access management tools, calculators, databases, datasets, and compilations of data. Employer is defined expansively to include direct and indirect employers, labor contractors, and all branches of state and local government. Worker covers both employees and independent contractors.

Lab. Code § 1522

Pre-use notice requirements for automated decision systems

Deployer

(a)(1)–(3) 1 An employer shall provide a written notice that an ADS, for the purpose of making employment-related decisions, not including hiring, is in use at the workplace to a worker who will foreseeably be directly affected by the ADS, or their authorized representative, according to the following: (1) At least 30 days before an ADS is first deployed by the employer. (2) If the employer is using an ADS to assist in making employment-related decisions at the time this title takes effect, no later than April 1, 2026. (3) To a new worker within 30 days of hiring the worker.

(b) 2 An employer shall maintain an updated list of all ADS currently in use.

(c)(1)–(3) 1 A written notice required by this section shall be all of the following: (1) Written in plain language as a separate, stand-alone communication. (2) In the language in which routine communications and other information are provided to workers. (3) Provided via a simple and easy-to-use method, including, but not limited to, an email, hyperlink, or other written format.

(d) 3 An employer shall notify a job applicant upon receiving the application that the employer utilizes an ADS when making hiring decisions, if the employer will use the ADS in making decisions for that position. Notifications may be made using an automatic reply mechanism or on a job posting.

(e)(1)–(7) 1 A notice issued pursuant to subdivision (a) shall contain the following information: (1) The type of employment-related decisions potentially affected by the ADS. (2) A general description of the categories of worker input data the ADS will use, the sources of worker input data, and how worker input data will be collected. (3) Any key parameters known to disproportionately affect the output of the ADS. (4) The individuals, vendors, or entities that created the ADS. (5) If applicable, a description of each quota set or measured by an ADS to which the worker is subject, including the quantified number of tasks to be performed or products to be produced, and any potential adverse employment action that could result from failure to meet the quota, as well as whether those quotas are subject to change and if any notice is given of changes in quotas. (6) A description of the worker's right to access and correct the worker's data used by the ADS. (7) That the employer is prohibited from retaliating against workers for exercising their rights described in paragraph (6).

Section 1522 imposes two distinct pre-use notice obligations. First, employers must provide written notice to workers foreseeably affected by an ADS used for non-hiring employment-related decisions at least 30 days before deployment (or by April 1, 2026 for systems already in use), and within 30 days of hiring a new worker. The notice must contain detailed information including the types of decisions affected, categories of data used, key parameters affecting output, the ADS vendor, quota descriptions, and data access and correction rights. Second, employers must separately notify job applicants when ADS is used in hiring decisions for the position to which they are applying.

The notice must be written in plain language, in the worker's routine language, and delivered via a simple method such as email or hyperlink. Employers must also maintain an updated list of all ADS currently in use.

Compliance actions 3 items

Employers must provide a written pre-use notice to each worker (or their authorized representative) who will foreseeably be directly affected by an ADS used for employment-related decisions other than hiring. The notice must be provided: (1) at least 30 days before an ADS is first deployed; (2) no later than April 1, 2026 for ADS already in use when the law takes effect; and (3) within 30 days of hiring a new worker. The notice must be written in plain language as a separate, stand-alone communication, in the worker's routine language, and delivered via a simple method such as email, hyperlink, or other written format. The notice must contain: the types of employment-related decisions affected; a general description of the categories, sources, and collection methods for worker input data; key parameters known to disproportionately affect ADS output; the ADS vendor or creator; any quota set or measured by the ADS (including task quantities, potential adverse actions for failure, and whether quotas are subject to change); a description of the worker's right to access and correct data used by the ADS; and a statement that retaliation for exercising those rights is prohibited.

H-01.1

Employers must maintain an updated list of all automated decision systems currently in use.

G-01.3

Employers must notify job applicants upon receiving the application that the employer uses an ADS in making hiring decisions, if the ADS will be used for that position. Notification may be provided via an automatic reply mechanism or on the job posting.

H-01.3

Lab. Code § 1524

Employer requirements: prohibited uses, human review, and data access

Deployer

(a)(1)–(3) 4 An employer shall not use an ADS to do any of the following: (1) Prevent compliance with or violate any federal, state, or local labor, occupational health and safety, employment, or civil rights laws or regulations. (2) Infer a worker's protected status under Section 12940 of the Government Code. (3) Identify, profile, predict, or take adverse action against a worker for exercising their legal rights, including, but not limited to, rights guaranteed by state and federal employment and labor law.

(b) 5 An employer shall not use an ADS to collect worker data for a purpose that is not disclosed pursuant to the notice requirements in Chapter 2 (commencing with Section 1522).

(c)(1)–(2) 6 An employer shall not rely solely on an ADS when making a discipline, termination, or deactivation decision. (2) When an employer relies primarily on ADS output to make a discipline, termination, or deactivation decision, the employer shall use a human reviewer to review the ADS output and compile and review other information that is relevant to the decision, if any. For purposes of this paragraph, "other information" may include, but is not limited to, any of the following: (A) Supervisory or managerial evaluations. (B) Personnel files. (C) Work product of workers. (D) Peer reviews. (E) Witness interviews, that may include relevant online customer reviews.

(d) 7 An employer shall not use customer ratings as the only or primary input data for an ADS to make employment-related decisions.

(e) 8 A worker shall have the right to request, and an employer shall provide, a copy of the most recent 12 months of the worker's own data primarily used by an ADS to make a discipline, termination, or deactivation decision. A worker is limited to one request every 12 months for a copy of their own data used by an ADS to make a discipline, termination, or deactivation decision.

(f) 9 For purposes of safeguarding the privacy rights of consumers, workers, and individuals, when an employer is required to provide worker data pursuant to this part, that worker data shall be provided in a manner that anonymizes the customer's, other worker's, or individual's personal information.

Section 1524 is the bill's substantive conduct section, imposing both prohibitions and affirmative requirements. Subdivision (a) prohibits employers from using ADS to violate labor, employment, or civil rights laws, to infer a worker's protected status, or to identify, profile, predict, or take adverse action against workers exercising legal rights. Subdivision (b) prohibits data collection for undisclosed purposes. Subdivision (c) prohibits sole reliance on ADS for discipline, termination, or deactivation and requires meaningful human review when ADS is the primary basis. Subdivision (d) prohibits using customer ratings as the sole or primary ADS input. Subdivision (e) grants workers a right to request copies of their data used in discipline, termination, or deactivation decisions. Subdivision (f) requires that any worker data disclosed be anonymized to protect third-party privacy.

Compliance actions 6 items

Employers must not use an ADS to: (1) prevent compliance with or violate any federal, state, or local labor, occupational health and safety, employment, or civil rights laws or regulations; (2) infer a worker's protected status under Government Code Section 12940; or (3) identify, profile, predict, or take adverse action against a worker for exercising their legal rights, including rights guaranteed by state and federal employment and labor law.

S-02

Employers must not use an ADS to collect worker data for any purpose that was not disclosed in the pre-use notice required under Chapter 2.

D-01.4

Employers must not rely solely on an ADS when making a discipline, termination, or deactivation decision. When an employer relies primarily on ADS output for such a decision, a human reviewer must review the ADS output and compile and review other relevant information, which may include supervisory or managerial evaluations, personnel files, work product, peer reviews, and witness interviews (including relevant online customer reviews).

H-01.6

Employers must not use customer ratings as the only or primary input data for an ADS to make employment-related decisions.

H-01

Workers have the right to request, and employers must provide, a copy of the most recent 12 months of the worker's own data primarily used by an ADS to make a discipline, termination, or deactivation decision. Workers are limited to one request every 12 months.

D-01.1

When providing worker data pursuant to this part, employers must anonymize the personal information of customers, other workers, and other individuals contained in or associated with that data.

D-01.4

Lab. Code § 1526

Post-use notice for discipline, termination, or deactivation decisions

Deployer

(a)(1)–(3), (b)(1)–(4) 10 An employer that primarily relied on an ADS to make a discipline, termination, or deactivation decision shall provide the affected worker with a written notice at the time the employer informs the worker of the decision. The notice shall be all of the following: (1) Written in plain language as a separate, stand-alone communication. (2) In the language in which routine communications and other information are provided to workers. (3) Provided via a simple and easy-to-use method, including an email, hyperlink, or other written format. (b) A notice issued pursuant to subdivision (a) shall contain all of the following information: (1) The human to contact for more information about the decision and the ability to request a copy of the worker's own worker data relied on in the decision. (2) That the employer used an ADS to assist the employer in one or more discipline, termination, or deactivation decisions with respect to the worker. (3) That the worker has the right to request a copy of the worker's data used by the ADS. (4) That the employer is prohibited from retaliating against the worker for exercising their rights under this part.

Section 1526 requires employers to provide affected workers with a post-decision written notice at the time the employer informs the worker of a discipline, termination, or deactivation decision that primarily relied on an ADS. The notice must identify the human contact for more information, state that the employer used an ADS to assist in the decision, inform the worker of their right to request a copy of their data, and state that retaliation for exercising rights under the part is prohibited. As with the pre-use notice, it must be in plain language, in the worker's routine language, and delivered via a simple method.

Compliance actions 1 item

Employers that primarily relied on an ADS to make a discipline, termination, or deactivation decision must provide the affected worker with a written notice at the time the worker is informed of the decision. The notice must be in plain language as a separate, stand-alone communication, in the worker's routine language, delivered via a simple method, and must contain: (1) the human to contact for more information and to request a copy of the worker's data; (2) a statement that the employer used an ADS in the decision; (3) a statement that the worker has the right to request a copy of data used by the ADS; and (4) a statement that retaliation for exercising rights under this part is prohibited.

H-01.1

Lab. Code § 1530

Anti-retaliation protections

Deployer

11 An employer shall not discharge, threaten to discharge, demote, suspend, or in any manner discriminate or retaliate against any worker for using or attempting to use their rights under this part, filing a complaint with the Labor Commissioner, alleging a violation of this part, cooperating in an investigation or prosecution of an alleged violation of this part, or any action taken by the worker to invoke or assist in any manner the enforcement of this part, or for exercising or attempting to exercise any right protected under this part.

Section 1530 prohibits employers from retaliating against workers for exercising any rights under this part, filing complaints with the Labor Commissioner, alleging violations, cooperating in investigations, or assisting in enforcement. The anti-retaliation protection is broad, covering discharge, threats of discharge, demotion, suspension, and any form of discrimination or retaliation.

Compliance actions 1 item

Employers must not discharge, threaten to discharge, demote, suspend, or in any manner discriminate or retaliate against any worker for exercising or attempting to exercise their rights under this part, filing a complaint with the Labor Commissioner, alleging a violation, cooperating in an investigation or prosecution, or taking any action to invoke or assist enforcement of this part.

G-03.3

Lab. Code § 1532

Enforcement mechanisms, penalties, and remedies

(a)–(d) The Labor Commissioner shall enforce this part, including investigating an alleged violation, and ordering appropriate temporary relief to mitigate a violation or maintain the status quo pending the completion of a full investigation or hearing through the procedures set forth in Section 98.3, 98.7, 98.74, or 1197.1, including issuing a citation against an employer who violates this part and filing a civil action. If a citation is issued, the procedures for issuing, contesting, and enforcing judgments for citations and civil penalties issued by the Labor Commissioner shall be the same as those set out in Section 98.74 or 1197.1, as applicable. (b) This part may also alternatively be enforced by a public prosecutor pursuant to Chapter 8 (commencing with Section 180) of Division 1. (c) In any civil action brought pursuant to paragraph (a) or (b) in superior court in any county wherein the violation in question is alleged to have occurred, or wherein the person resides or transacts business, the petitioner may seek appropriate temporary or preliminary injunctive relief, including punitive damages, and reasonable attorney's fees and costs as part of the costs of any such action for damages. (d) An employer who violates this part shall be subject to a civil penalty of five hundred dollars ($500).

Section 1532 establishes the enforcement framework. The Labor Commissioner has primary enforcement authority including investigation, temporary relief, citations, and civil actions. Public prosecutors may alternatively enforce the part. In civil actions, petitioners may seek injunctive relief, punitive damages, and reasonable attorney's fees and costs. A $500 civil penalty applies per violation. There is no private right of action for individual workers — enforcement runs through the Labor Commissioner or public prosecutors.

Lab. Code § 1534

Non-preemption of local ordinances

This part does not preempt any city, county, or city and county ordinance that provides equal or greater protection to workers who are covered by this part.

Section 1534 is a savings clause preserving the authority of cities, counties, and cities and counties to enact local ordinances providing equal or greater worker protections than this part. It creates no new compliance obligation.

Lab. Code § 1536

Preemption of substantially similar state notice requirements

Except as set forth in Section 1537, an employer who complies with the requirements related to notice under this part is not required to comply with any substantially similar notice provisions related to automated decision systems used for employment-related decisions required under any other state law.

Section 1536 provides that an employer complying with the notice requirements of this part is not required to comply with substantially similar ADS notice provisions under any other state law, subject to the exception in Section 1537. This is a compliance safe harbor for notice obligations, avoiding duplicative notice requirements across California statutes.

Lab. Code § 1537

Preservation of CCPA automated decisionmaking regulations

Notwithstanding Section 1536, an employer that is a business subject to the California Consumer Privacy Act of 2018 (Title 1.81.5 (commencing with Section 1798.100) of Part 4 of Division 3 of the Civil Code) is subject to any privacy-related automated decisionmaking technology regulation duly adopted by the California Privacy Protection Agency pursuant to Section 1798.185 and subdivision (b) of Section 1798.199.40 of the Civil Code.

Section 1537 carves out the California Consumer Privacy Act from the preemption provision in Section 1536. Employers subject to the CCPA remain bound by any automated decisionmaking technology regulations adopted by the California Privacy Protection Agency, even if they comply with this part's notice requirements. This ensures that CPPA regulatory authority is preserved.

Lab. Code § 1538

Collective bargaining agreement exemption

The provisions of this part shall not apply to parties covered by a collective bargaining agreement if the agreement explicitly waives this part in clear and unambiguous terms, expressly provides for the wages or earning, working conditions, and other terms and conditions of work, and provides protection from algorithmic management.

Section 1538 exempts parties covered by a valid collective bargaining agreement from the bill's requirements, provided the agreement explicitly waives the part in clear and unambiguous terms, expressly provides for wages, working conditions, and other employment terms, and provides protection from algorithmic management. All three conditions must be met for the exemption to apply.

Lab. Code § 1539

Federal government contractor savings clause

This part does not prohibit any employer from complying with regulatory or contractual requirements in the provision of products or services to the federal government.

Section 1539 is a savings clause ensuring that the bill does not prohibit employers from complying with regulatory or contractual requirements in the provision of products or services to the federal government. This addresses potential conflicts between the bill's ADS restrictions and federal procurement or regulatory obligations.

Section 2

Severability

The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.

Section 2 is a standard severability clause declaring that if any provision of the act or its application is held invalid, the invalidity does not affect other provisions or applications that can be given effect independently.

Safety Harmful content prevention · self-harm escalation

1 item

S-02

Data Controls Data sale restrictions · deidentification

3 items

D-01.4

Employers must not use an ADS to collect worker data for any purpose that was not disclosed in the pre-use notice required under Chapter 2.

D-01.1

D-01.4

When providing worker data pursuant to this part, employers must anonymize the personal information of customers, other workers, and other individuals contained in or associated with that data.

Human Oversight Decision review · appeal pathways

5 items

H-01.1

H-01.3

H-01.6

H-01

Employers must not use customer ratings as the only or primary input data for an ADS to make employment-related decisions.

H-01.1

Governance Risk management · accountability programs

2 items

G-01.3

Employers must maintain an updated list of all automated decision systems currently in use.

G-03.3

Passage Likelihood

Failed

Status Failed

Final action Veto sustained.

Legislative History

2024-12-02 Introduced. Read first time. To Com. on RLS. for assignment. To print.

2024-12-03 From printer. May be acted upon on or after January 2.

2025-01-29 Referred to Com. on RLS.

2025-03-06 From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.

2025-03-19 Re-referred to Coms. on L., P.E. & R. and JUD.

2025-03-26 Set for hearing April 9.

2025-04-09 From committee: Do pass and re-refer to Com. on JUD. (Ayes 4. Noes 1. Page 739.) (April 9). Re-referred to Com. on JUD.

2025-04-10 Set for hearing April 29.

2025-04-30 From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 11. Noes 2. Page 937.) (April 29).

2025-05-01 Read second time and amended. Re-referred to Com. on APPR.

2025-05-09 Set for hearing May 19.

2025-05-19 May 19 hearing: Placed on APPR. suspense file.

2025-05-20 Set for hearing May 23.

2025-05-23 From committee: Do pass. (Ayes 5. Noes 1. Page 1187.) (May 23).

2025-05-23 Read second time. Ordered to third reading.

2025-06-02 Read third time. Passed. (Ayes 27. Noes 10. Page 1388.) Ordered to the Assembly.

2025-06-03 In Assembly. Read first time. Held at Desk.

2025-06-09 Referred to Coms. on L. & E., P. & C.P., and JUD.

2025-06-19 From committee with author's amendments. Read second time and amended. Re-referred to Com. on L. & E.

2025-06-26 From committee: Do pass and re-refer to Com. on P. & C.P. (Ayes 5. Noes 0.) (June 25). Re-referred to Com. on P. & C.P.

2025-07-09 July 8 hearing postponed by committee.

2025-07-09 From committee with author's amendments. Read second time and amended. Re-referred to Com. on P. & C.P.

2025-07-17 From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 4.) (July 16). Re-referred to Com. on APPR.

2025-08-20 August 20 set for first hearing. Placed on APPR. suspense file.

2025-08-29 From committee: Do pass as amended. (Ayes 10. Noes 4.) (August 29).

2025-09-02 Read second time and amended. Ordered to second reading.

2025-09-03 Read second time. Ordered to third reading.

2025-09-05 Assembly Rule 69(b)(1) suspended.

2025-09-05 Read third time and amended.

2025-09-05 Ordered to third reading.

2025-09-11 Read third time. Passed. (Ayes 45. Noes 17. Page 3338.) Ordered to the Senate.

2025-09-12 In Senate. Concurrence in Assembly amendments pending.

2025-09-12 Assembly amendments concurred in. (Ayes 28. Noes 9. Page 2988.) Ordered to engrossing and enrolling.

2025-09-23 Enrolled and presented to the Governor at 2 p.m.

2025-10-13 Vetoed by the Governor.

2025-10-13 In Senate. Consideration of Governor's veto pending.

2026-03-02 Stricken from file.

2026-03-02 Veto sustained.

Sources

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Entry Last Reviewed

2026-05-04

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